The UAE is renowned as a land of opportunities for individuals seeking employment and aspiring entrepreneurs. Numerous laws are in place to ensure businesses are established legally, and entrepreneurs receive the necessary support during company formation. The process has been streamlined through online platforms provided by UAE economic authorities. Each emirate has its own dedicated platform, allowing residents to meet the specific requirements of their city. Entrepreneurs in the UAE are also eligible for a 10-year Golden Visa, provided they meet certain criteria. The primary authority responsible for such matters is the Ministry of Economy. The country offers ambitious businesspeople the chance to establish their organizations in either mainland or free zones. A mainland company faces no restrictions on its commercial activities and can operate anywhere in the UAE. Depending on the nature of the business, a local sponsor or partner may be required.
From identifying your business to registering it, here is a straightforward guide to setting up your business in the mainland in the UAE. Platforms like Basher allow individuals to set up their business online within just 15 minutes. This unified platform includes local and federal government authorities from various emirates responsible for licensing. The process can also be completed through the Department of Economic Development in the respective emirate. Each emirate, including Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, and Umm Al Quwain, has its own Department of Economic Development online portal. Fujairah residents can use the Fujairah Municipality portal. Here are the steps to establish your company in the UAE:
1. Identify the type of business: Obtain an economic license based on the company's activities. The UAE offers over 2,000 economic activities, with the main six types being occupational, tourism, industrial, commercial, agricultural, and professional.
2. Identify the company's legal structure: The legal structure determines the regulations the company must follow. The legal forms of business in the UAE include sole establishment, branch of a GCC company, civil company, branch of a local company, limited liability company, holding company, public joint stock company, representative office of a foreign company, and private joint stock company.
3. Register the trade name: A trade name is essential as it represents the organization. The name should be unique, not offensive, and aligned with the chosen economic activity. It must include the legal structure suffix (LLC, PJSC, etc.) and cannot contain names of rulers, government agencies, or logos of government bodies. Approval must be obtained from the Department of Economic Development and the Ministry of Economy, with certificates subject to renewal.
4. Apply for initial approval: After registering for a trade license, apply for initial approval. This approval signals the UAE Government's green light to proceed with the next steps. Note that this 'no objection' does not permit starting the business.
5. Create LSA or MOA: Depending on the business type, acquire a Memorandum of Association (MOA) or a Local Service Agent agreement (LSA). MOA is required for civil companies, limited liability companies, public shareholding companies, and private shareholding companies. Sole proprietorships need an LSA.
6. Find a business location: All non-e-commerce businesses in the UAE require a physical address. In Dubai, the space must be registered with the Dubai Land Department’s Ejari portal. The Department of Economic Development specifies location requirements, and local municipalities and other authorities may have additional regulations.
7. Apply for other government approvals: Depending on the business and activity, obtain approvals from various authorities, including the Ministry of Interior, Ministry of Justice, local municipal departments, Telecommunications and Digital Government Regulatory Authority (TDRA), Executive Council, Ministry of Economy, local health departments, and the Supreme Petroleum Council.
8. Submit important documents: To proceed, submit essential documents such as the receipt of initial approval, copies of previously submitted documents, a copy of the lease contract, Memorandum(s) of Association, and approvals from other government entities.
9. Pay fees and collect the license: After paying the required fees and submitting the application, collect the business license from the economic department's service centers or website.
10. Register the company: After obtaining the license, register the company with the Chamber of Commerce and Industry to commence business operations. Each emirate has its own Chamber of Commerce and Industry under the Federation of UAE Chambers of Commerce and Industry.
